Appraisal Reconsideration “True”or “False” Consider the following scenario, then answer “Yes” or “No”: An appraisal on a recent home sale comes in low. The next week, a (very) similar home that had been “Pending” at the time the appraisal was done subsequently closes . . . . for well above asking price. Can the closed...Read More
Did the Appraiser Goof? A client trying to refinance his mortgage recently ran into a not-uncommon problem: a low appraisal. My client was convinced that the appraiser goofed because — amongst other things — the appraiser listed the home as only having one Bathroom, not two. Unfortunately, the second Bathroom is in the basement. Because...Read More
Spending $500 to Make $35,000(!) Realtors are commonly asked to estimate how much $1 spent on staging, updating, or repairs will add to a home’s selling price. Here are the ranges I usually quote: Staging: 5:1 Updating: 2:1 Repairs: 3:1 But, the best return on investment I’ve ever heard about was the $500 a Twin Cities...Read More
Weighing Defensive Clauses, Offensive Clauses — & No Clauses [Editor’s Note: Nothing in this post or on this blog should be construed as offering legal counsel. If you require legal advice, please consult an attorney.] “Home must appraise at or above sale price. If appraisal is below that amount, Buyer shall have the right to renegotiate this...Read More
Sticking With the Bird in the Hand The reason that Buyers and Sellers typically renegotiate the price when a home appraises low is that the Seller has no guaranty that . . . it won’t happen again. Either with the same Buyer, and another lender. Or, if they scuttle the deal, with another Buyer and...Read More
“The reason dolphins have a reputation for saving drowning swimmers is because you never hear from the ones they push out to sea.” As a Realtor, you seldom hear about the transactions where the home appraised at (or above) the sales price, and the deal went on to close smoothly. On the contrary, you hear...Read More
